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  #781063 13-Mar-2013 12:39
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Wonder who's got a spare $80 ~ 90 mil these days??




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  #781076 13-Mar-2013 13:11
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old3eyes: Wonder who's got a spare $80 ~ 90 mil these days??


$80-90m?   you are joking right.

Can't see it being worth more than 30m, and thats at a push.

 
 
 
 


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  #781079 13-Mar-2013 13:21
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NonprayingMantis:
old3eyes: Wonder who's got a spare $80 ~ 90 mil these days??


$80-90m?   you are joking right.

Can't see it being worth more than 30m, and thats at a push.


I believe the pricing will be based on the the profit, as some buyer will be borrowing to buy it, so the return needs to be better than the interest they are borrowing at.

I just hope it remains a member of the TDR.

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  #781108 13-Mar-2013 14:38
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NonprayingMantis:
old3eyes: Wonder who's got a spare $80 ~ 90 mil these days??


$80-90m?   you are joking right.

Can't see it being worth more than 30m, and thats at a push.




Well thats what the TechDay article is suggesting. But yeah its hard to imagine why that much, although it should be worth a whole lot more the the $25 mill they bought it for, as the customer base and profile and improved massively.

I think the big question is who is bankrolling Vivid, theres talk of Revera but do they even have that sort of money?

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  #781118 13-Mar-2013 15:21
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nickb800:
NonprayingMantis:
old3eyes: Wonder who's got a spare $80 ~ 90 mil these days??


$80-90m?   you are joking right.

Can't see it being worth more than 30m, and thats at a push.




Well thats what the TechDay article is suggesting. But yeah its hard to imagine why that much, although it should be worth a whole lot more the the $25 mill they bought it for, as the customer base and profile and improved massively.

I think the big question is who is bankrolling Vivid, theres talk of Revera but do they even have that sort of money?


customer base will have improved, but that doesn't mean they are making any more money. They miht be making less, or even huge losses!

Unless the buyer is somebdoy who thinks they can extract serious synergy benefits (e.g. 2degrees to complements their mobile network, Sky to get into the ISP market, an existing ISP to improve economies of scale) then they probably aren't worth very much at all IMHO



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  #781125 13-Mar-2013 15:44
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So long as Vodafone don't buy them, I could care less (VF just made an acquisition and Orcon is crap now because they spent too much time buying new companies and not putting in the proper infrastructure).

The rot is at the top of Orcon (Right at the top) so unless the new buyer cleans out the top level management they are in for some more pain.


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  #781127 13-Mar-2013 15:49
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Kyanar: ...I just escaped Orcon to join Compass!)

Ye gads! And I was thinking of joining Orcon when my current contract is up. I guess I should read the news more Embarassed

 
 
 
 


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  #781365 14-Mar-2013 04:04
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networkn:
So long as Vodafone don't buy them, I could care less (VF just made an acquisition and Orcon is crap now because they spent too much time buying new companies and not putting in the proper infrastructure).

The rot is at the top of Orcon (Right at the top) so unless the new buyer cleans out the top level management they are in for some more pain.



Well, Scott B will remain CEO of Kordia, and won't go back to Orcon in any sale. Don't know how far to the top you consider the 'rot' to be, but I imagine most of the rest of the management team would stay at least in the short term. Anyway, they've done a pretty good job of improving revenues, so I wouldn't be too hard on them.

However... there is no way Orcon is profitable right now or in the short term future. The company has been way too SOE'd. Too many levels of management, too many silly procedures and corporate politicking... the Genius product looks as though it would cost them way too much to get out the door, churn rate is high because service/support is useless, costs of trying to claw back ETCs are high, and they probably end up making something like $20-$30 (total, not per month) per customer on the ones that do stick it out for 12 months (which is probably only about 70% of the customers at best - and the rest of them they're making a loss on).

I only hope that whoever has bought it rips the thing apart, pulls out the good bits, throws out the bad, streamlines everything and turns it back in to the awesome company that it once was. Good luck to the buyer, and may their Vivid dreams become a reality. Cool


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  #781429 14-Mar-2013 09:56
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zANavAShi:
Kyanar: ...I just escaped Orcon to join Compass!)

Ye gads! And I was thinking of joining Orcon when my current contract is up. I guess I should read the news more Embarassed


reading about compass reviews is disconcerting. (never actually used them though)

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  #781446 14-Mar-2013 10:23
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Might be time for me to start looking for another ISP..... every ISP Ive been with that has been sold off to someone else, has always gone to crap shortly afterwards :( (Ive still got records of my emails to Woosh after they ran QSI into the ground)

I hope the pattern dosent repeat with Orcon.....but guess we'll have to wait and see.




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  #781480 14-Mar-2013 11:06

willnz: 
....
However... there is no way Orcon is profitable right now or in the short term future. The company has been way too SOE'd. Too many levels of management, too many silly procedures and corporate politicking... the Genius product looks as though it would cost them way too much to get out the door, churn rate is high because service/support is useless, costs of trying to claw back ETCs are high, and they probably end up making something like $20-$30 (total, not per month) per customer on the ones that do stick it out for 12 months (which is probably only about 70% of the customers at best - and the rest of them they're making a loss on).
.....


Huh, you'd imagine that's what the early termination fee is for? Set at the margin of where most people are 'fedup' and left, so they won't have to provide any service and still recoup their $20-$30 or however much..

Sounds a bit silly to set yourself up for loss.. or is consumer broadband a loss leader for Orcon Money Mouth

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  #781484 14-Mar-2013 11:13
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land grab prior to a sale maybe




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  #781932 14-Mar-2013 21:07
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Huh, you'd imagine that's what the early termination fee is for? Set at the margin of where most people are 'fedup' and left, so they won't have to provide any service and still recoup their $20-$30 or however much..

Sounds a bit silly to set yourself up for loss.. or is consumer broadband a loss leader for Orcon Money Mouth


ETCs cost a lot in staff time and potentially legal fees etc if people dispute them saying that Orcon was not providing them with the service or support that they signed up for. While on the face of it it looks simple, when you take all costs involved in to account on many of the ones that leave it's cheaper just to let 'em go and not bother about chasing the ETCs.

In saying that though - I've seen instances where Orcon have baycorped people for amounts in the cents. Yes, really. Undecided

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  #781951 14-Mar-2013 21:40
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maverick: land grab prior to a sale maybe


Not an unsound business strategy and one used many times before in NZ....




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  #782048 15-Mar-2013 06:56
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Anything good will probably stay with Kordia anyway - like what Vocus will probably end up doing with Maxnet... strip out the good stuff, flick off the marginless residential dudes and dudettes to people who can be bothered dealing with it (Sorry, but it's the truth - residential is a painful business, but hey, someone has to do it!)

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